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thesmalls

10/31/13 2:41 PM

#2355 RE: Luxeguy #2354

if the company is as confident in their beliefs as you are with the brand - they should publicly say so and lay out a clear, articulated plan on getting to certain short term goals such as: where short term capital will come from and if it is in the secondary markets, what they are prepared to do to limit dilution; when they will become able to self sustain operation; time frame to eliminate backlogs. on a longer term front, they should spell out strategic vision and path to get to $100MM revenue, full year profitability, and plans for a formalized, traditional media launch to get 100% penetration in the US.

right now, there is a very large disconnect between expressed demand/backorders and capital. it is rare that a borrower comes to a bank or lender with a large list of backorders that cant be filled due to production capital. even with tight lending, someone has to realize that a 10-15% return on cash is attractive with minimal downside (since orders are in hand). this would eliminate the dilution threat. so - why are lenders not emerging with cash if orders are somewhat guaranteed? mgmt needs to bridge that communication gap if they want the company and stock to move forward.